Thanks in part to a strengthening mortgage business, Lynchburg-based Bank of the James had a net income of $504,000 in the first quarter of 2008, nearly a 27 percent increase from the same period in 2007.
The bank’s leaders say the strong earnings from January to March 31 speak well of the local economy.
“We continue to see this market holding up well economically,” said Bob Chapman, president.
Todd Scruggs, vice president, said it was the best the bank has performed in the first three months of any year. “The first quarter is harder because traditionally you have fewer mortgages,” he said.
However, Bank of the James saw an increase in the number of mortgages so far this year.
Mortgage origination fees and revenue from the bank’s investment arm make up the major chunk of non-interest income. The bank had non-interest income of $739,000 in the first quarter, a 16.8 percent increase from a year ago.
“I think it’s a testament to the mortgage operations and their customer service,” Chapman said.
Brian Cash, leader of the bank’s mortgage group, said a lot of the mortgages result from relationships the bank has formed with builders.
Also, several national loan companies have left the market since sub prime mortgage troubles began last year. Chapman said less competition has allowed Bank of the James to pick up more customers.
The bank netted $2.5 million in interest income in the first quarter, a growth of about 11 per-cent.
The bank is in a growth mode currently, Chapman said, and has its eyes on opening a branch in Bedford city by Oct. 1.
Chapman said they have done business in Bedford, but “this gives us a regional office in that area. We look forward to becoming a part of the city of Bedford community.”
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